Which One of the Following Statements Is Correct

question 38

Multiple Choice

Which one of the following statements is correct?

• A)The money market refers to securities that mature in two years or less.
• B)Banks are prohibited from investing cash surpluses on behalf of their customers on a short- term basis.
• C)Short-term securities tend to have a high degree of interest rate risk.
• D)A cyclical firm may purchase marketable securities as part of its short-term financing plan.
• E)Corporations are not permitted to invest in money market mutual funds but can invest in bank money market accounts.

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Definitions:

High Deductible

A high deductible refers to the larger initial amount paid by an insured person before insurance coverage for healthcare costs begins, often leading to lower premium costs.

Low-risk Drivers

Individuals who are considered to have a lower probability of filing an insurance claim due to their safe driving habits, often resulting in lower insurance premiums.

Lemons

A citrus fruit with a bright yellow color and sour taste, often used in cooking and beverages.

Plums

A type of fruit that belongs to the genus Prunus, known for their sweet taste and juicy texture, often consumed fresh, dried, or in various culinary dishes.